DoD's $37.7M contract for launch sustainment engineering services awarded to Parsons Government Services Inc

Contract Overview

Contract Amount: $37,698,647 ($37.7M)

Contractor: Parsons Government Services Inc.

Awarding Agency: Department of Defense

Start Date: 2018-11-30

End Date: 2026-05-31

Contract Duration: 2,739 days

Daily Burn Rate: $13.8K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: BASIC SUSTAINMENT ENGINEERING SERVICES FOR ACTIVITIES AND LICENSES IN SUPPORT OF LAUNCH AND EARLY ORBIT, ANOMALY RESOLUTION, AND DISPOSAL OPERATION (LADO) SUSTAINMENT PROGRAM AT PETERSON AIR FORCE BASE (AFB), SCHRIEVER AFB, AND VANDENBERG AFB.

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80914

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $37.7 million to PARSONS GOVERNMENT SERVICES INC. for work described as: BASIC SUSTAINMENT ENGINEERING SERVICES FOR ACTIVITIES AND LICENSES IN SUPPORT OF LAUNCH AND EARLY ORBIT, ANOMALY RESOLUTION, AND DISPOSAL OPERATION (LADO) SUSTAINMENT PROGRAM AT PETERSON AIR FORCE BASE (AFB), SCHRIEVER AFB, AND VANDENBERG AFB. Key points: 1. Contract focuses on critical sustainment engineering for launch and early orbit, anomaly resolution, and disposal operations. 2. Services are essential for maintaining the operational readiness and safety of space assets. 3. The contract's duration spans over seven years, indicating a long-term need for these specialized services. 4. Performance is spread across multiple Air Force bases, suggesting a geographically distributed operational requirement. 5. The firm-fixed-price contract type aims to provide cost certainty for the government. 6. This award falls under Research and Development in Physical, Engineering, and Life Sciences, highlighting its technical nature.

Value Assessment

Rating: good

The contract value of $37.7 million over approximately seven years appears reasonable for specialized engineering support in the defense sector. Benchmarking against similar sustainment and R&D contracts for complex aerospace systems would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests an effort to control costs, but the absence of detailed cost breakdowns makes a granular price assessment challenging. The scope of work, encompassing launch, anomaly resolution, and disposal, is critical and likely commands a premium for specialized expertise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities, proprietary knowledge, or when urgency dictates a rapid award. The lack of competition means that the government did not benefit from a price discovery process driven by multiple bids, potentially leading to higher costs than if it had been competed.

Taxpayer Impact: For taxpayers, a sole-source award means there is a reduced opportunity to ensure the lowest possible price through competitive bidding. Oversight and justification for the sole-source nature are crucial to ensure fair pricing and prevent potential overspending.

Public Impact

The primary beneficiaries are the Department of the Air Force and the broader Department of Defense, ensuring the successful and safe operation of space launch and early orbit phases. Services delivered include critical engineering support for launch, anomaly resolution, and disposal operations, directly impacting mission success. The contract has a geographic impact across Peterson AFB, Schriever AFB, and Vandenberg AFB, supporting key space operations infrastructure. Workforce implications include the employment of highly skilled engineers and technical personnel specializing in aerospace and sustainment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
Long contract duration could lead to scope creep or evolving requirements not fully captured in initial pricing.
Reliance on a single contractor for critical sustainment functions poses a risk if performance falters.

Positive Signals

Parsons Government Services Inc. is a known entity in government contracting, suggesting a degree of established capability.
The firm-fixed-price contract type provides budget predictability.
The contract addresses essential functions for national security space assets.

Sector Analysis

The contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This area is crucial for advancing aerospace technology and ensuring the reliability of complex systems. The market for space sustainment and launch support is highly specialized, with a limited number of contractors possessing the requisite expertise. Spending in this niche is driven by national security imperatives and the increasing reliance on space-based assets.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, Parsons Government Services Inc., is a large business. There is no explicit information regarding subcontracting plans for small businesses within the provided data. This suggests that opportunities for small businesses may be limited unless they are direct suppliers or partners to the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract, requiring delivery of specified services. Transparency is facilitated through contract award databases, though detailed performance metrics and cost breakdowns may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Space Launch Operations
Satellite Sustainment Services
Aerospace Engineering Support
Department of Defense R&D Contracts
Air Force Sustainment Programs

Risk Flags

Sole-source award
Long contract duration
Critical infrastructure support

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.7 million to PARSONS GOVERNMENT SERVICES INC.. BASIC SUSTAINMENT ENGINEERING SERVICES FOR ACTIVITIES AND LICENSES IN SUPPORT OF LAUNCH AND EARLY ORBIT, ANOMALY RESOLUTION, AND DISPOSAL OPERATION (LADO) SUSTAINMENT PROGRAM AT PETERSON AIR FORCE BASE (AFB), SCHRIEVER AFB, AND VANDENBERG AFB.

Who is the contractor on this award?

The obligated recipient is PARSONS GOVERNMENT SERVICES INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $37.7 million.

What is the period of performance?

Start: 2018-11-30. End: 2026-05-31.

What is the track record of Parsons Government Services Inc. in delivering similar sustainment engineering services for the Department of Defense?

Parsons Government Services Inc. has a significant history of performing complex engineering and technical services for various government agencies, including the Department of Defense. While specific details on past performance for the LADO Sustainment Program are not provided in this data snippet, Parsons is generally recognized for its capabilities in areas such as infrastructure, defense, and cybersecurity. Their experience often includes large-scale project management, systems engineering, and operational support. A deeper dive into their contract history, past performance reviews, and any reported issues or successes on similar projects would be necessary for a comprehensive assessment of their track record for this specific type of service.

How does the awarded value of $37.7 million compare to similar contracts for launch and early orbit sustainment engineering?

Benchmarking the $37.7 million contract value requires comparing it to similar contracts for launch and early orbit sustainment engineering, anomaly resolution, and disposal operations. Given the specialized nature of these services and the long duration (approximately seven years), this value appears within a plausible range for complex aerospace support. However, without access to a database of comparable contracts, including their scope, duration, and specific deliverables, a precise comparison is difficult. Factors such as the number of assets supported, the complexity of the systems, and the specific technical requirements would significantly influence pricing. A detailed analysis would involve identifying contracts with similar technical requirements, contract types (firm-fixed-price), and agency (DoD/Air Force) to establish a robust benchmark.

What are the primary risks associated with a sole-source award for critical sustainment engineering services?

The primary risks associated with a sole-source award for critical sustainment engineering services include potential lack of price competition, which can lead to higher costs for the government compared to a fully competed contract. There's also a risk of contractor complacency or reduced incentive to innovate due to the absence of competitive pressure. Furthermore, if the sole-source contractor faces performance issues, financial instability, or decides to exit the market, the government may face significant disruption in critical operations due to the lack of readily available alternative providers. Ensuring robust contract management, performance monitoring, and clear deliverables is paramount to mitigate these risks.

How effective are firm-fixed-price contracts in managing costs for long-term R&D and sustainment services?

Firm-fixed-price (FFP) contracts are generally effective in managing costs for services where the scope of work is well-defined and risks can be reasonably estimated. For long-term R&D and sustainment services, FFP provides cost certainty to the government, shifting the risk of cost overruns to the contractor. This encourages the contractor to manage their costs efficiently. However, for R&D, where outcomes can be uncertain, or for sustainment services with evolving requirements, an FFP contract might incentivize the contractor to minimize effort or scope, potentially impacting quality or comprehensiveness. Careful definition of requirements and performance metrics is crucial to ensure effectiveness.

What is the historical spending pattern for launch and early orbit sustainment engineering services within the Department of the Air Force?

Historical spending patterns for launch and early orbit sustainment engineering services within the Department of the Air Force (and DoD broadly) tend to be substantial and consistent, reflecting the ongoing need to maintain and operate complex space systems. These services are critical for national security and often involve multi-year contracts due to the long lifecycle of space assets. Spending is influenced by the number of active satellites, the development of new launch capabilities, and evolving threats. While specific historical figures for this exact contract category are not provided, the overall trend indicates significant and sustained investment in space operations and sustainment, often awarded through competitive processes but sometimes through sole-source mechanisms for specialized or legacy systems.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA822418R0028

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Parsons Corporation

Address: 5875 TRINITY PKWY STE 230, CENTREVILLE, VA, 20120

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,740,415

Exercised Options: $39,786,008

Current Obligation: $37,698,647

Actual Outlays: $241,332

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $932,625

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA822419D0006

IDV Type: IDC

Timeline